Productivity and employment dynamics: new evidence from Italian regions
|Title||Productivity and employment dynamics: new evidence from Italian regions|
|Publication Type||Working Paper|
|Year of Publication||2015|
|Authors||B. Biagi, MG. Ladu|
|ISBN Number||978 88 8467 926 0|
When productivity growth accelerates job destruction and job creation occurs simultaneously. However the results for the whole economy depend on which effect eventually dominates. We investigate what occurs in Italy during the time span 1977-2003, when some waves of labor market reforms have been introduced towards more flexibility. We also investigate if there are any systematic regional differences in the employment/productivity dynamics and whether these dynamics experience any sort of spatial externalities. Findings suggest that overall in Italy job destruction effect prevails and that the labor market reforms have a negative impact on employment.